Govt accused of stalling insurance penetration

WORRIED by the inability of the government to honour its insurance laws, practitioners have called on the federal, state and local governments to insure their assets. This, they said, will go a long way in helping the sectors’ leadership to deepen the practice of insurance in the country.

Captains of the industry, who spoke with The Nation, said there is need for the government at all levels to support the industry. They said though the Federal Government has shown some positive interests in the insurance business, appropriate premiums should be made available to pay for government’s covers.

The President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs Laide Osijo, said the government should not undervalue its assets as has been the practice, adding that there is need for the government to further protect the industry by living up to its responsibility, as the largest insurance client.

He said the undervaluation of government’s assets is capable of slowing the pace of development of insurance industry.

Mrs. Osijo said situations where insurance assets are not properly evaluated, leading to inappropriate rates and premium, it could result in the diminution of the growth and depth of insurance penetration in the country.

She said the government should make it a priority to attract foreign investment into the country in to grow insurance capacity, among other things, and ensure that violation of insurance laws are met with appropriate sanctions.

Also, the President, Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, called on governments to support the insurance industry by procuring policies to cover their risks.

He noted that such patronage would help to promote service delivery and enhance international best practices.

He said there are compelling reasons why the citizenry and governments should take insurance more seriously, adding that Nigerians are under threats from risks emanating from natural disasters, such as floods, rainstorms and security, which have taken their tolls on the citizenry.

He argued that low insurance contributions to the economy stemmed from lack of necessary infrastructure, which prevent people from buying insurance.

“With unemployment at an estimated 23.9 per cent in 2012, the insurance business in Nigeria is hardly able to improve on its contribution to the nation’s GDP above one per cent, unlike in South Africa where it is 15 per cent,” he said, adding that the reason for this is because people are apparently laden with costs which are channelled at the procurement of otherwise basic and fundamental needs, such as electricity, water and security.’’

The President of the Risk Surveyors Association of Nigeria (RISAN), Jacob Adeosun, said if the government has taken the insurance its assets seriously, when crisis arise like the floods that have have ravaged most coastal communities, the insurance industry would have come to their rescue.

He criticised the situation where the government takes money budgeted for other things to solve or replace state properties when they are damaged, saying the insurance industry would have done that had the government insured the assets and paid premium, accordingly.